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CAMPAIGN REPORT ON NEW MEDIA: The media specialists - As the internet becomes increasingly central to the communications process, traditional media agencies are worried that they are losing business to a new breed of interactive specialists. By Robert Gra

Looking back, it’s clear that 1999 was the year online advertising
really took off in the UK. Advertisers spent about pounds 50 million
online last year, a drop in the ocean compared with TV or print spend,
but a massive leap from the negligible sums spent in the previous few
years - when internet penetration was far lower and the medium was
misunderstood in many quarters.

Looking back, it’s clear that 1999 was the year online advertising

really took off in the UK. Advertisers spent about pounds 50 million

online last year, a drop in the ocean compared with TV or print spend,

but a massive leap from the negligible sums spent in the previous few

years - when internet penetration was far lower and the medium was

misunderstood in many quarters.

Suddenly, on the back of the dotcom boom and a growing awareness among

more traditional advertisers of the interactive and

relationship-building possibilities offered by online, a raft of new

agencies emerged - distinct from full-service new-media agencies - to

specialise in internet planning and buying.

Many traditional media agencies appear to have been caught

flat-footed.

’1999 was the first year you could really call it a market,’ Ray Taylor,

the managing director of the new-media specialist eyeconomy, says. ’My

view is that the developments of the best elements of online advertising

will come from the specialist independents, companies such as ourselves

and the media21s and i-levels of this world. The true specialists will

be making all the headway and all the running.’

The agencies that Taylor mentions, media21 and i-level, are arguably the

two highest profile new-media specialist start-ups of last year. Both

have senior staff with impressive track-records in new media, the kind

of talent that is in short supply given that the industry is so young.

This gives the start-ups an edge over those traditional agencies whose

digital teams have less experience of planning and buying online.

’I think that the skills level of the market has changed a bit but not

in line with the growth of the marketplace,’ Charlie Dobres, the i-level

chief executive officer, says. ’It takes three years to get three years’

experience - you can’t suddenly acquire it.’

Pete Robins, the director of media21, says: ’Some of the bigger agencies

are looking at plugging a gap. They realise they should have done this

sooner.’

Carat is among the traditional agencies that are building a presence in

the digital marketplace. It has invested heavily to bump up its Carat

Interactive arm from six to 21 staff and brought in Robert Horler, the

former Emap Online commercial director, as joint managing partner with